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If the crypto market was a food chain Bitcoin When Ethereum (CRYPTO: ETH) is at the top. However, the rankings are subject to change daily, so the next eight will increase significantly. Solana When Cardano Recognized as an Ethereum killer, but must overtake Binance When Ripple You will reach the second place.
The approaching dark horse Terra (CRYPTO: LUNA) Market capitalization is approximately US $ 34 billion. In terms of popularity, Terra is in the 10th place. But it could be a real threat to Ethereum, not Solana or Cardano. On March 2, 2022, the Coin Desk reported that LUNA was the second largest bet asset of all major cryptocurrencies.
According to Stakeing Rewards data, over US $ 30 billion of LUNA is bet directly on various platforms, while Ether is US $ 28 billion. Due to strong fundamentals within the community and overall positive sentiment, prices have risen 77% since February 1, 2022.
Face to face
Like other ciphers, volatility is Terra-specific. According to some crypto analysts, the Metaverse has the potential to catalyze Terra’s future growth. However, Ethereum remains an advantage due to its vast ecosystem of applications and developers. With a dozen decentralized finance (DeFi) protocols in the bakery, the Terra Ecosystem provides an incentive to attract investors.
Another factor that can push up the price of LUNA is the burning of tokens to ensure asset shortages. Ethereum, on the other hand, is not Patty’s competitor. A leader in programmable blockchain, it hosts almost all DeFI apps and the Metaverse project in addition to most of the NFT market. ETH burns the coin and continues to put upward pressure on the price of the coin, resulting in deflation like LUNA.
Investment paper
Ethereum is a software platform that runs on the blockchain, but it serves two purposes. Bill Noble, Chief Technical Analysts at TokenMetrics, says cryptos can be valuable because they act as money. Noble describes Ethereum as the DeFi highway.
Developers are typical users of software platforms and create new applications. “It’s all underpinned by the idea of this smart contract,” said Ollie Leech, learning editor at Coindesk. Smart contracts relate to programs that run autonomously on the Ethereum blockchain. Leech adds that smart contracts perform all the functions that some third parties normally have to handle.
Terraform Labs, along with co-founders Do Kwon and Daniel Shin, are behind the Terra blockchain. Its DeFi ecosystem creates stablecoins or cryptos with a fixed algorithm for booking assets such as US dollars. Like Ethereum, Terra builds a variety of applications, including lending and borrowing.
Extreme volatility
Don’t expect Terra to stage up Ethereum right away. LUNA needs to show continued user growth and widespread adoption minus incentives. Ethereum has a market capitalization of US $ 33.62 billion, ten times larger than its potential rivals. In addition, Terra may be on the same boat as Ripple.
On November 12, 2021, the US SEC filed a subpoena proceeding against Terraform Labs and CEO Do Kwon. Filing states that the SEC is conducting an investigation to determine if the company, Kwon, or anyone else has violated federal securities law. Finally, at Ethereum (US $ 2,950.12) and Terra (US $ 92.11) your money is not safe. Due to the extreme volatility, you are more likely to lose.
